From this issue onwards, PICPA MMR will attempt to tickle you with the most recent relevant developments affecting our business and everyday life.

…excerpt of R.A. 9504
The law aims "to provide financial relief to taxpayers in cognizance by the government of the hard times brought by multiple factors, including the current rice crisis, oil price hikes and the heightening inflationary pressure on commodities of all kinds and to help reduce the wide tax gap in the taxation of self-employed and professionals," according to the five-page document released to media.

Senator Manuel Roxas, principal author of the measure, said the new law would "provide relief to our workers by increasing their take home pay."

From the current P20,000 personal exemption for single taxpayers, P25,000 for head of family, and P32,000 for married individual, the tax exemption will be fixed at P50,000, Roxas said.

The additional exemption for dependents will increase from P8,000 to P25,000, he said.

From the current P20,000 personal exemption for single taxpayers, P25,000 for head of family, and P32,000 for married individual, the tax exemption will be fixed at P50,000, Roxas said.

The additional exemption for dependents will increase from P8,000 to P25,000, he said.

The senator added that all holiday, night differential, hazard, and overtime pay would also be tax-exempt.

The law is said to take effect 15 days after its publication in a national newspaper.

… excerpt R.A. 6727
WHEREAS, the Regional Tripartite Wages and Productivity Board- National Capital Region (RTWPB-NCR) is mandated under R.A. 6727 (The Wage Rationalization Act), to periodically assess wage rates and conduct continuing studies in the determination of the minimum wage applicable in the region or industry;

WHEREAS, after due notice to all concerned sectors, the RTWPB-NCR pursuant to its power under Article 123 of the Labor Code conducted consultations with labor and employer sectors on the 1st and 2nd of May 2008, respectively, and a public hearing on the 13th of May 2008, to determine the propriety of issuing a new wage order;

Section 1. NEW MINIMUM WAGE RATES. Upon effectivity of this Wage Order, all private sector minimum wage workers and employees in the National Capital Region shall receive an increase in the amount of Twenty Pesos (P20.00) per day consisting of Fifteen Pesos (P15.00) Basic Wage and Five Pesos (P5.00) Cost of Living Allowance. The Five Pesos (P5.00) COLA shall be automatically integrated into the basic wage on 28 August 2008.

a) The new daily minimum wage rates of covered workers in the private sector in the National Capital Region shall be as follows:

* To be integrated into the basic wage on 28 August 2008.

Section 8. EXEMPTIONS. Upon application with and as determined by the Board, based on documentation and other requirements in accordance with applicable rules and regulations issued by the NWPC, the following may be exempted from the applicability of this Order:

1. Distressed Establishments;
2. Establishments whose Total Assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, are not more than P3Million;
3. Retail/Service Establishments Regularly Employing Not More Than Ten (10) workers;
4. Establishments Adversely Affected by Natural Calamities;
5. Micro and small indigenous exporters as certified by the Export Development Council, subject to the criteria and requirements to be provided for in its Implementing Rules.

Section 21. EFFECTIVITY. This Wage Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.